No announcement yet.

1 cent in TIRA, an issue?

  • Filter
  • Time
  • Show
Clear All
new posts

  • 1 cent in TIRA, an issue?

    New to the website, learning since the beginning of the year.

    Please answer this naïve q.

    I did the backdoor Roth conversion with Fidelity for the first time and noticed that there is still one cent in my TIRA for some reason.

    Would this count as money in TIRA? I guess it's their practice to keep the TIRA active.

    Thank you.

  • #2
    It happens from time to time. It's not an issue. It is not needed to keep the account open or active.

    If you search there are probably threads on this site about it. There are definitely multiple threads over on bogleheads about it.

    Congratulations on doing the backdoor Roth!


    • #3
      It often happens due to timing issues of when the custodian pays interest on the account (assuming you've simply kept your deposit in a MMA), sometimes several dollars. Just ignore it. Some custodians require a minimum balance to keep the account open, others don't. If possible, you should keep the account open (TIRA) just to avoid repeating the process of opening a new account every year.
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


      • #4
        Helping those who wear the white coat get a fair shake on Wall Street since 2011